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Lloyds Banking Group has earmarked an additional £ 700m to cover the probe of probe and related judgments of the Court at a potential wrong sale of car financing loans.
Lloyds He announced the provision on Thursday with his results in the fourth quarter. In the last quarter, the Bank has announced a legal profit before the tax in the amount of £ 824 million, below the expense of the market of £ 1.2 billion and less than £ 1.8 billion in the previous year.
High street lender recorded a return of tangible capital-a booty measure of profitability-12.3 percent for the whole year, below the goal of 13 percent. Three -month revenues increased from 4.4 billion pounds year after year, just above an expectation of £ 4.3 billion.
Lloyds has already booked a provision of £ 450 million last year to cover the potential costs of the wrong car sales, after the financial behavior body has begun to examine discretionary commissions on loans.
However, analysts have since raised an assessment of a potential goal in the UK banking sector after the appellanting court ruled that it was illegal for banks to pay any commissioner of car dealers without informed customers’ consent.
The decision was encouraged by Lloyds CEO Charlie Nunn to warn the “Investment Problem” For the UK and banks, they pushed the government to intervene to protect economic growth when the Supreme Court listened to appeal in April. But the judges’ council blocked the treasury request to intervene in that case.
The cost of financing the car was undesirable distractions as Lloyds enters the last part of an investment plan of £ 4 billion aimed at modernization of its business and growth in areas that are less closely related to interest rates.
Lloyds also pushed a reduction in costs, including the introduction of “branch sharing” for customers of their three stamps: Bank of Scotland, Halifax and Lloyds. The lender also said this year that Close two offices In Liverpool and Dunfermline. It also examines hundreds of jobs as part of the effort to digitize its operations.
Lloyds net interest margin – a difference between the interest charges on the loans and rates he pays on the customer deposits – rose to 2.97 percent in the fourth quarter; Compared to 2.95 percent in the previous quarter, as it benefited from so -called structural protection that protects it from the fall of interest rates.
The group said it remained “highly committed to distributing shareholders” despite the hit of the car and announced plans for the shareholder award for a final dividend of 2.11 fake per share. He also said he was planning to buy £ 1.7 billion in his own shares.
